Variable Manuf. Overhead is applied on the basis of direct labor hours. The fol

Variable Manuf. Overhead is applied on the basis of direct labor hours. The following data are available for October:
3750 units of compound were produced during the month.
There were no beginning direct materials inventory
The ending direct materials inventory was 2000 ounces
Direct materials purchased: 12000 ounces for $225000
Direct labor hours worked: 5600 hours at a cost of $67200
Variable Manufacturing Overhead costs incurred amounted to $18200
Variable manufacturing overhead applied to products: $18375 The variable overhead spending variance for October is: